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Why would Twitter settle?

• fullshark 4y ago
  To close the sale and end litigation
  • saalweachter 4y ago
    So right now the Twitter market cap looks to be about $12 billion dollars lower than the standing offer. I'd naively assume that the price to settle starts at $12 billion dollars, and maybe goes up rather than down -- right now that $42 stock price is at least anchored by the probability of Musk being forced to buy it at $54, so if this ends without a sale, we might expect the stock price to go down.
    • nemothekid 4y ago
      >So right now the Twitter market cap looks to be about $12 billion dollars lower than the standing offer. You also have to factor in almost every other social media company is down 50% YTD. If the deal falls through, the market will price TWTR like how they did to facebook which shaves off another ~$15B off their market cap. So TWTR actually stands to gain ~$27B in value.
    • DoesntMatter22 4y ago
      There is a zero perfect chance that Elon settles for anything near 12 billion as that is in the ballpark of what he was going to put into it. It'd just be cheaper to buy the company if he had to settle for that much.
      • saalweachter 4y ago
        I mean, if the options are "go through with the sale and be forced to sell enough shares of Tesla to lose control of it" or "pay $12 billion for nothing, but maintain control of Tesla"...